Session - III

Mr. P.K. GargWireless Advisor, Ministry of CommunicationGovt. of India

Broadcast Regulatory and Policy Issues

Session Chairman

Speakers

Ms. Norazah Mohd NorSpectrum Consultant, Doha Qatar

Mr. R.N. ChoubeyTRAI, India

Mr. S. SayeenathanISRO, India

Mr. SingaraveluWPC, India

Ms. Deepali SharmaAll India Radio, India

Mr. P.K. GargWireless Advisor, Ministry of CommunicationGovt. of India

Mr. P. K. Garg, Wireless Adviser to the Government of India, has 38 years of experience in various aspects of radio frequency spectrum management and radio-communications. He heads the Wireless Planning & Coordination (WPC) Wing of the Ministry of Communications & IT, which is the national spectrum management agency in India.

He was elected as a Member of the Radio Regulations Board of ITU through international elections held at the ITU Plenipotentiary Conference (Turkey, November 2006) for a four year term (2007 – 2010). This is recognition for the country as well as for the expertise of Mr. Garg.

He holds degree in Electronics & Communication Engineering from Punjab Engineering College, Chandigarh and is a Fellow of the Institution of Electronics & Telecommunication Engineers (IETE) for last 20 years and has served as a nominated member of its Council. The Institution of Engineers, Delhi Centre had felicitated him with the 'Eminent Engineer Award' for 2003.

Mr. Garg has widely traveled for participation in various international and regional conferences, meeting and Study programs. Since 1980, he has taken part in various conferences and meetings of International Telecommunication Union (ITU), Geneva, Asia Pacific Telecommunity (APT), Bangkok, International Telecommunication Satellite Organisation (INTELSAT, now ITSO), Washington (USA) and other international & regional bodies connected with telecommunications. He has chaired many committees and working groups at international conferences. He is presently the Vice-chairman of the Special Committee on Regulatory & Procedural Matters of the ITU Radiocommunication sector.

Mr. Garg has served as the Senior UN & ITU Expert in Radio Frequency Spectrum Management in Saudi Arabia for about two years. He has also worked with the Government of Seychelles as Senior Technical Expert under ITEC program of Ministry of External Affairs.

He has published many papers besides speaking at large number of national and international seminars in India and abroad on spectrum issues. He has also chaired many seminars in the field of wireless communications and RF spectrum management.

Ms. Norazah Mohd NorSpectrum Consultant, Doha Qatar

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Abstract

The broadcast industries, be it terrestrial or satellite are regulated in various ways at the national and international levels.

The presentation ponders on the Licensing regime including regulation of spectrum affecting broadcasters taking Malaysia as case study where its' regulator, the Malaysian Communication and Multimedia Commission is tasked to manage the so call converged industries that include the telecommunication and broadcast (or what is known now as “communication and multimedia”).

The basis of existing regulation will be touched briefly in the presentation. The presentation proceeds with consideration on how far regulators with similar “outlook” are able to control the broadcasters within their jurisdiction. It considers how effective the current regulatory and policy is and assesses how far official policies on this issue are in tune with the norms and principles of international regimes, and presents conclusions within the framework of the globalization debate.

Regulation of Spectrum - Case study of Malysia

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Regulation of Spectrum - Case study of Malysia

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ABOUT THE SPEAKER

I have more than fifteen (15) years working experience in Communication Industry right from planning, operation and implementation of communication network including regulatory matters around the world.

I have Masters Degree in Business Administration (MBA) from University of Technology MARA, Malaysia finishing top in class and I also hold an Honours Degree in Electronic Communication Engineering from Salford University, United Kingdom.

I initially work with Malaysian Communications and Multimedia Commission (MCMC) as the Expert/Deputy Director, Spectrum Research & Planning and now as their Spectrum Consultant. (MCMC is the regulator for the converged Communications and Multimedia Industry in Malaysia).

One of my current responsibilities is as the Consultant to the Malaysian National Preparatory Working Group (NPWG) in preparation for International Telecommunication Union (ITU) World Radiocommunication Conference (WRC) working on spectrum allocation and regulatory matters and satellite orbital.

I was also responsible with all aspect of Spectrum Planning work for the nation. I was the lead coordinator that successfully published the first official National Spectrum Plan document under MCMC in November 2006. The team also produced Standard Radio Systems Plan (SRSP) that are the main document used in determining the specification on use of frequency bands for specific service. There are currently about 40 SRSP documents that are in force.

Before joining MCMC I was working as General Manager - Operation with Universal Telecommunication Network Services overlooking the company's business operation and implementation. Prior to that, I was working with Technology Resources Berhad under the International Operation where I was involved with paging system in China, ETACs cellular system in Cambodia and as Project Manager setting up the GSM Cellular Network in Tanzania.

Mr. R.N. ChoubeyTRAI, India

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Abstract

Broadcast service, starting from the radio in early years, has developed to a great extent, especially after the advent of television. Broadcast Service is among one of the very few services which has a very strong impact on the population both at the national and international levels. With various technologies and products coming into marketplace catering to different broadcast applications, ensuring unhindered growth of broadcast services through suitable regulations is an essential step taking into consideration technical, commercial and legal aspects. Technologically, in the area of transmission and processing of broadcast signals, moving to digital domain from analog domain has brought in a new regulatory scenario. Similarly, use of terrestrial and satellite media, separately as well as jointly, necessitated suitable regulatory treatment. Unlike earlier days, nowadays in many countries, broadcast services are being provided by private entities, in addition to the government entity to meet the demand for broadcast services. Accordingly, in many countries, policies and regulations have been developed to allow many players in this field. With the emergence of multimedia and convergence of services , the nature of regulations traditionally used to govern may have to be reviewed suitably to encourage the new technologies. Policy and regulatory framework for broadcast services are based on various factors. Allocation of suitable spectrum is one the most important task. This process involves consideration of various interrelated issues like control of interference, licensing, number of service providers, compatibility with existing services etc. This paper gives the overview of regulatory scenario and spectrum management issues for broadcast services both at international levels and at national levels.

Broadcast Regulatory and Policy Issues

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Broadcast Regulatory and Policy Issues

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ABOUT THE SPEAKER

Education:

BSc (Hons) (Physics) from St. Stephen's College, Delhi University in 1977

MSc (Physics) from St. Stephen's College, Delhi University in 1979

M.Sc. (Social & Developmental Planning), London School of Economics in 1994

Employment History:

Joined IAS in 1981 and allotted to Tamilnadu Cadre. Continued in Govt. of Tamil Nadu till 1998 and held various positions such as Collector of Kanyakumari, Collector of Madurai; Executive Director Tamilnadu Industrial Development Corporation; CMD, Tamilnadu Small Industries Development Corporation; Joint Commissioner Commercial Taxes; Joint Secretary/ Additional Secretary/ Special Secretary in the Finance Department of Government of Tamil Nadu.

Joined Govt of India on deputation in 1998 and was posted as Director and then as Joint Secretary in ththe Department of Expenditure, Ministry of Finance for 5 years. Thereafter joined the 12 Finance

Commission as Joint Secretary for the next two years.

Presently, working as Pr. Advisor in Broadcasting and Cable Services Division of the Telecom Regulatory Authority of India since 1.8.2006. In this capacity, I am responsible for assisting the Authority in regulating the Broadcasting and Cable Television Sector, including DTH, FM Radio etc.

Mr. S. SayeenathanISRO, India

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Abstract

Broadcast service, starting from the radio in early years, has developed to a great extent, especially after the advent of television. Broadcast Service is among one of the very few services which has a very strong impact on the population both at the national and international levels. With various technologies and products coming into marketplace catering to different broadcast applications, ensuring unhindered growth of broadcast services through suitable regulations is an essential step taking into consideration technical, commercial and legal aspects. Technologically, in the area of transmission and processing of broadcast signals, moving to digital domain from analog domain has brought in a new regulatory scenario. Similarly, use of terrestrial and satellite media, separately as well as jointly, necessitated suitable regulatory treatment. Unlike earlier days, nowadays in many countries, broadcast services are being provided by private entities, in addition to the government entity to meet the demand for broadcast services. Accordingly, in many countries, policies and regulations have been developed to allow many players in this field. With the emergence of multimedia and convergence of services , the nature of regulations traditionally used to govern may have to be reviewed suitably to encourage the new technologies. Policy and regulatory framework for broadcast services are based on various factors. Allocation of suitable spectrum is one the most important task. This process involves consideration of various interrelated issues like control of interference, licensing, number of service providers, compatibility with existing services etc. This paper gives the overview of regulatory scenario and spectrum management issues for broadcast services both at international levels and at national levels.

Broadcast Service Regulatory and Policy Frameworks and Present Day Challenges

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Broadcast Service Regulatory and Policy Frameworks and Present Day Challenges

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ABOUT THE SPEAKER

Mr. S. Sayeenathan is a postgraduate in telecommunication systems from University of Madras. He is Deputy Director of the Frequency Management Office of Indian Space Research Organisation of Department of Space and is responsible for frequency coordination and regulatory aspects pertaining to all satellites, launch vehicle, earth stations, radars and other communication systems of ISRO/DOS. He has more than twenty five years of experience in the area of spectrum management area and regulations at both at national and international levels. He has made major contributions in obtaining orbit-spectrum resources for the country through coordination of Indian space missions covering various areas like Communication, Broadcasting, Meteorology, Remote sensing, Passive services, Radio Astronomy, Scientific experiments and Launch vehicles. He is member of various national level committees formulating spectrum management related policies and regulations. He has made significant contributions towards preparation of Indian position and inputs to ITU and major international conferences like World Radio Conference (WRC) and Asia Pacific Telecommunity (APT), Space Frequency Coordination Group (SFCG) on spectrum management and regulatory issues. He has served as chairman of various technical subgroups during World Radio Conferences and preparatory meetings.

Mr. D. SingaraveluWPC, India

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Abstract

The Governments' permission for Private FM broadcasting under Phase I, triggered the growth of FM radio in the country. The awareness on FM radio has increased after the start of Phase I channels which has resulted in heavy demand during the Phase II licensing procedures. WPC Wing also had to overwork to device means to meet the sudden increase in the broadcast spectrum. The present proposal of the Government for further increase in the number of licences, may force WPC Wing to adopt stringent measures in order to accommodate the spectrum requirements of all licensees. The issues, realities, possible solutions etc., will be discussed.

Regulatory Issues on FM Broadcasting in India

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Regulatory Issues on FM Broadcasting in India

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ABOUT THE SPEAKER

After obtaining the Graduate degree in Electronics and Telecommunication Engineering joined Wireless Planning and Coordination Wing in the year 1977. After serving two years initially in the Monitoring Organization, joined WPC Wing in the year 1980 and handled varied spectrum management functions including satellite coordination and management for more than two decades. He also has a Postgraduate Diploma in Business Administration and in Applied Electronics & Microwave Engineering. He also attended various training programs, seminars and coordination meetings in India and abroad relating to spectrum management. He is presently serving as Deputy Wireless Adviser, responsible for terrestrial spectrum management up to 806 MHz.

Ms. Deepali SharmaAll India Radio, India

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Abstract

Mobile Commerce (M-Commerce) is a subset of e-commerce, which includes all e-commerce transactions, carried out using mobile (hand held) device(s). With significant uncertainties and complexities due to evolving business and regulatory models, growth of M-Commerce is a function of appropriate and timely policy interventions from the government(s). The business growth is further complicated by the involvement of several interrelated stake-holders, various regulatory agencies. The M-Commerce eco-system comprises of mobile telecom service providers, banking/financial institutions, content facilitators, retailers, mobile terminal industry, and end users as the major stake-holders. To understand the M-commerce growth facilitators in India, where M-Commerce is at its infancy, system dynamics simulation modelcausal loop sdiagrams indicating influencing relationships have been developed. The simulation models are used to analyze the impact of policy and regulatory interventions on the growth of M-Commerce. These models frameworks can help policy makers in understanding the inter play between various independent regulatory/policy approaches and assessing their impact in a holistic manner on the business eco-system.

Regulatory Challenges in M-Commerce Ecosystem

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Regulatory Challenges in M-Commerce Ecosystem

stakeholders and provide cost effective services to 1.0 INTRODUCTION the consumers. Regulation is a way to modify

The merger of telecom, broadcasting and IT behaviour of individuals, organizations and Services has resulted in formation of Global businesses to work in a desired way, which is in the Information Infrastructure (GII), which is capable interest of society. Regulation is thus used by state

of carrying any type of information. WWireless to achieve wider social goals-equity, diversity, or technology and devices have further enhanced the social solidarity and to hold powerful corporate,

capabilities of GII by facilitating wireless professional, or social interests to account (Walshe, information carriage advancing the concept of e- 2002). Government tries to push its policies economy to mobile domain. The counterparts of e- through regulations by defining the codes of commerce and e-governance in the mobile domain conduct, setting standards and monitoring and are termed as M-commerce and M-governance enforcing them. To design a good regulatory (Sundar, et. al., 2002, 2005a, 2005b). M-commerce framework and ensure reasonable level of is a convergence of mobile telecom (including compliance it is important to understand the network and receiving devices), computing power, characteristics of market, structuring of individual internet technologies and applications and content organizations and their interrelations in the set up, provision (Lehner & Watson, 2001; Mylonopoulos obstacles in regulatory compliance and then take a & Doukidis, 2003). M-Commerce has many holistic multidisciplinary approach towards advantages associated with it such as reduced establishing the rules of the game.(OECD, 2000) transaction costs, wider access on both supply and

Many technologies have been developed and demand side, improved quality of life through marketed in last few years but only few have been increased security & autonomy, possibility of blessed with a commercial success, irrespective of entertainment, communication and shopping while their potential and capacities. In a dynamic on move which is a major attraction for the newer environment development of technology is generation, possibility of location based services, followed by business applications further followed ease and convenience of use. M-commerce is by regulations. Policies and regulations in advance expected to play an important role in economic and are often not recommended fearing that excess social development of a country (Krishnamurthy, control over a business in initial stages may hamper 2001). its overall development. However, there are success

Many applications and services are possible on M- stories of anticipatory or timely regulatory reforms Commerce and the success of technology depends in telecom sector in developing countries. India is on the width of innovative services and depth of an example of good regulatory framework behind content push. (Sundar et. al., 2006; Samarajiva et. al., the successful mobile telephone industry. The 2002). The growth of the M-commerce industry is mobile subscriber base in India stands at a figure of powered by synergies between various 130210 mi l l i on mob i l e use r s in May stakeholders/players. Another important facilitator September2007, adding at a rate of 4.5-57-8 million for mobile commerce is the presence of properly users per month and expected mobile content sales functioning payment systems that reduce of the level of Rs 1800 crores in the year 2007. With transaction costs in the economy and promote the these high growth rates, information trade on efficient use of financial resources (Bank for mobile technologies in India requires advance International Settlement, 2003). regulatory framework to be designed that would

synergize various stakeholders and act as a catalyst It is necessary to have appropriate policy for growth. This paper addresses the impact of frameworks and regulatory mechanisms/agencies policies and regulation on the growth of m-in place to facilitate a level playing field for all commerce, with specific reference to India.

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Empirical research in many areas of m-commerce is both wired and wireless segments. With the advent lacking because of considerable uncertainties. of third generation technology in mobile Okazaki (2005) has detailed the progress made and communications facilitating fast internet access and future directions of m-commerce research. Lehner many commerce commercial applications on and Watson (2001) have prescribed various mobile devices, the existing sectoral regulatory perspectives to conduct research on mobile system needs some alterations.commerce like the stake holder perspective, mobile

The regulatory governance in case of m-commerce commerce services and applications perspective

falls under the purview of numerous sectoral and the mobile commerce market players

regulators . The regulatory purview of various (Institutional) perspective. The stakeholder

sectoral authorities such as the Reserve Bank of perspective was further extended to identify

India (the Central Bank and financial regulator), stakeholders and develop an m-commerce business

Information and Broadcasting Ministry (content model (Sundar et.al., 2006)

regulator), Telecom Regulatory Authority of India There is ample literature available on mobile (Telecom and broadcasting carriage regulator), commerce applications, services, statistics, user Commerce Ministry), Securities and Exchange acceptance related issues (Wang J.J., 2005; Lin & Board of India (the Capital Market regulator), Wang, 2005; Karjaluoto, 2006; Chu & Huang, 2005; Competition Commission of India, The IT Udo, 2001; Varshney et. al., 2000, 2003; Henten Commission, various utilities regulator and, et.al., 2003). However, literature on m-commerce taxation bodies. The regulatory purview of various related policy aspects in the Indian context is not sectoral authorities are independent of each other,. available as m-commerce is still at a very nascent iIndependence and autonomy being considered as stage in India (Sharma, 2007). The m-commerce the prime factors behind their successful working., eco-system is complex (Lee et. al., 2003; Sundar et. However, to support delivery of commercial al., 2006) and it is difficult to analyze the socio- services over mobile networks where more than economic and political inter-relatedness of m- one sectoral regulator is involved, there are no commerce using qualitative and intuitive judgments. coordination frameworks and situations are dealth Econometric analysis and regression analysis, with on case to case basis. Stakeholders in though can provide explanation for past behaviour, businesses based on new technologies such as m-are inappropriate for analyzing socio-economic commerce would have to provide a range of changes, nonlinear relationships and various services falling under the regulatory jurisdiction of interrelated factors (Wang & Cheong, 2005a, different authorities. In the absence of 2005b). In this paper the author has developed coordination among various regulatory agencies, System Dynamics based system dynamics the stakeholders such as the infrastructure simulation modelscausal loop diagrams to providers, service providers, content developers, represent the interrelatedness and complexities of content aggregators, payment service providers are the M-commerce eco-system and understand the in a state of confusion leaving markets to loose. impact of various policy interventions. This approach worsens the situation in case of

difference of opinion and interests among the 2.0 M-COMMERCE ECOSYSTEM: regulators on any a particular issue (Sharma, 2007).REGULATORY ISSUES

There is an increasing inclination of businesses to The mobile telecom sector in India has been expand in unrelated businesses, like telecom performing outstandingly well in last few years, companies to provide banking services, credit being given to the good regulatory system. broadcasting companies to provide telecom However, the sectoral regulatory system that has services, power companies to foray in the internet evolved, in India, as, as a result of liberalization and market, banking companies to enter in the futures privatizations fails at many fronts to address the and commodity markets. There is an increased issues raised by convergence of technologies in competition among business entities, services and

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their delivery platforms. Thus horizontal expansion 3.0 TELECOM AND IT and consolidation of business firms has further REGULATIONS IN INDIAincreased the need for integrated regulatory

The services in mobile commerce are the mechanisms and the regulatory responsibility of c o n v e r g e n c e o f s e r v i c e s i n m o b i l e states to check any abuse of market power.telecommunication industry and electronic

In internet trade most of the activity is seen in the commerce. Therefore, studying the factors and B2C segment as compared to developed countries, policies that have influenced the growth of mobile which see a high activity in B2B segment. The telecom and e-commerce sectors/services will be reason for this is the poor infrastructure support in helpful in understanding the desired policy terms of transport, power, roads, bandwidth etc. interventions and their impact on M-commerce.(Purohit & Purohit (2005). The issue of internet

3.1 Telecommunication Sector in India and trade and its regulations in India is therefore Regulatory Interventions:different compared to the developed nations.

Hence, the policy framework in India should not Telecom sector in India has been through two main only aim at an increase in internet based phases of policy governance - The National transactions but also aim for infrastructure Telecom Policy '94 which stressed on the need for development. In addition, the most sensitive issues private sector investment in telecom and the of privacy, data protection and protection of National Telecom Policy '99 which introduced the consumer interests need to be handled on a priority revenue sharing mechanism of license fees. The basis in policy making to build consumer trust third phase is expected with the introduction of 3G among the prospective users. technolog y in mobi le communicat ions

(CRISINFAC, 2005). The Telecom Regulatory Since the services provided in m-commerce are Authority of India (TRAI) which is a national integrated, the regulatory purview also needs to be independent regulatory body), which is a national under a single framework. The regulatory system independent regulatory body, was established in needs to be adapted to the new challenges to build 1996.the confidence of market, various stakeholders and

ultimate users A set of appropriate regulatory policies haveA set of appropriate regulatory policies has been The issue for regulatory policy design for m-instrumental in bringing the telecom revolution in commerce is very complicated as the regulatory India. The major interventions were the tariff breadth cuts across many industry verticals. regulation, introduction of WLL technology, Therefore it is very essential to identify various calling party regime and reduction in Access Deficit stakeholders, their interests and possible regulatory Charges. Further enhancement in services and governance that is suitable to promote mobile reduction in charges was facilitated by allowing commerce industry and then only plan the competition in the telecom sector. Technology and regulatory system. The stakeholders identified in m-service independent unified licensing regime and commerce domain are – Mobile users, Content regulatory interventions further reduced service Providers, Retailers, Banks/Financial Institutions, charges. Mobile Service Provider, and Government,

Application Developers/Aggregators and Mobile The regulatory interventions that have taken place Terminal manufacturers. A detailed analyses of in India are given in chronological sequence in their interest with respect to each other reveals that Appendix 1 and the impact of regulatory and policy there are conflict of interest on many issues among changes on mobile industry in Appendix 2.two or more stakeholders and every one would try

3.2 E-Commerce in India and Regulatory to use his bargaining power to their advantage and Interventions:thus the only aim of regulatory authority should be

to balance these conflicts in the best interest of the The e-commerce adoption rate in India has picked

society (Sundar et. al., 2006).

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up due to the penetration of internet (58 million providers, network providers and equipment internet users in Sept 2007 including 46 million manufacturers wireless subscribers), broadband and credit cards.

- Regulations to ensure healthy competition in the The e-commerce figures in India are given in Table

markets1.were expected to be of the order of 2300 crores with an average 8 lakh transactions per month. - Define scope of m-commerce and associated

details like acceptance of m-contracts etc.

- Details on domain name registration

- Ensure Network and information security

- Content Regulation

- User Data Protection

- Consumer protection and privacy

- Intellectual Property Rights

- Regulations on m-banking and m-payments like licenses to provide financial services, security of mobile transactions, standards on protocols and equipment used and security features built in them etc.4.0 POLICY DESIGN IN M-

- Taxation laws for mobile enabled businessCOMMERCE

- Dispute settlement MechanismM-commerce in India is in its nascent and there are no past trends or data to identify the - Cyber crimes including fraud, forgery, misuse of interrelationships between various factors. The content etc in m-domain.trends from matured markets (Pederson et. al.,

The above are classified under five major policy 2003) can be taken as reference but cannot be sectors namely, mobile telecommunications, applied directly to India due to differences in socio-banking & finance, content industry, retail industry economic culture and demographics. M-commerce and the mobile terminal industry. The sixth main has to be regulated mainly on three planes, namely, influencing factor is the M-commerce users. Their social, economic and legal. Under the rubric of legal adoption of M-commerce services would primarily framework there are a number of factors like laws, be influenced by affordability, availability of regulations, acts, treaties that should be India services, perceived utility of the services, social specific and suitable to the local needs apart from influence and the ease of subscription. These being compatible with international norms and sectors are governed by the respective regulatory practices. Under economic regulations framework agencies and corresponding policies. fall the rules for operating agencies and individuals,

whereas the social regulations are concerned with The policy designs in the related sectors are still

content regulations like type and openness of evolving to meet the needs of M-commerce and

content allowed, gaming laws etc. For proper therefore it is difficult to give accurate predictions

development of M-commerce prevalence of a of the course of these policies in time. The cause

sound policy support and a legal M-enabling and effect relationships between and among all the

environment is a must. These should provide for:stakeholders of the M-commerce eco-system are though dynamic but are a good tool to study and - Common minimal set of standards and codes evaluate understand the impact interrelatedness of of conduct for service/ application

Various policy and regulatory attempts have been initiated of which The Information Technology Act 2000 India is an important one. This provides for legal recognition of communications and transactions carried out by means of electronic data interchange and other means of electronic communication It has provided a legal framework for smooth conduct of E-commerce and M-commerce by tackling some of the major associated issues namely; requirement of writing; requirement of a document; requirement of a signature; and requirement of legal recognition for electronic messages, records and documents to be admitted as evidence in a court of law.

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various policy interventions on the growth of M- on mobile platform. Banking industry and its policy commerce. simulation modelsCausal loop diagrams environment is the primary enabler for mobile based on a systems dynamics (SD) approach have commerce as it guides the payment modalities and been developed in this paper. The whole ecosystem brings in user security, thus confidence.has been divided into six sub systems based on the

An appropriate set of M-commerce policies will influencing policy sectors and user perception as

enhance the potential M-commerce subscriber base represented by the Sectoral Overview Diagram in

as well improve the multiplying factor that decides Figure 1.

the number of potential mobile commerce users The Causal Loop Diagram in Figure 2 represents who subscribe to M-commerce services. The policy the cause-effect relationships for the M-commerce sectors identified above will be influenced by a host industry. It has been assumed that the pool of M- of factors and eighteen such factors have been commerce users will be a subset of the existing identified. The Table 2 1 below gives these mobile telephony service users. Depending on policy/stake-holder specific influencing factors.affordability and their need for available services

It is expected that in next five years the policy some of the mobile users would actually subscribe to various M-commerce services. This number would be direct ly or indirectly influenced by appropriate policies in the five policy sectors identified above and user perception. A p o l i c y i n m o b i l e telephony sector such as reduced regulatory charges, taxes, access deficit 4.1 Causal Loop Diagram for the M-commerce eco-system: charges etc. or in M o b i l e T e r m i n a l manufacturing industry like concessions for establishing

decisions related to m-commerce will be in place to new production base or reduced import duties foster the growth of M-commerce. This is would bring down the cost of ownership and corroborated from the experiences in mobile services and hence bring in more mobile users in the telecom industry where the last five years have affordability zone for M-commerce services. witnessed a promising policy environment (TRAI, Initiatives by the government to improve banking 2004, 2005; CRISINFAC 2005, 2006; Sundar et. al., system, promote innovation in payment models, 2006). There has been a tremendous rise in user steps to ensure data security and privacy of users base which is growing at the rate of 4-57-8 million would influence users to confidently go ahead with subscribers a month as per TRAI's latest quarterly purchase of content, goods or services through performance reports from March 2006 onwards. In mobile delivery platform. Similarly, appropriate addition 3G services slated to be rolled out in the policy measures in the content would facilitate market in the near future will not only facilitate high wider range of content, child security and more speed data access on wireless networks but also innovation in applications and services. Further accelerate policy guidelines from government like in opening of retail sector will boost this sector and as any other upcoming technology or industry.a result would push up services and goods uptake

Figure 1: Sectoral Overview Diagram

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interrelatedness of these various subsystems is SUMMARY AND CONCLUSIONSintricate. The causal loop framework considers the

The regulatory paradigm of M-commerce is M-commerce eco-system as an integrated entity. In complicated as it involves regulatory purview of reality each sector has its own regulatory more than one sectoral regulator. The frameworks and agencies. The regulatory structures

Banking Policy • Infrastructure Support Policy• • FDI and other investment laws• Payment related mechanisms • Labour Laws• Legal governance• Banking Code Content Policy• Micro Finance and Micro Credit • Fair revenue sharing mechanism• Security and Privacy • Payment related mechanisms

• Legal governanceRetail Policy • Availability of Manpower• Fair revenue sharing mechanism • Availability of Content• Payment related mechanisms• Legal governance Mobile Telecom policy• Retail Policy • Fair revenue sharing mechanism• Taxation Policy • Payment related mechanisms• Import Duties on Equipment • Legal governance• Availability of Technical Manpower • Infrastructure Support Policy

• Regulatory ChargesMobile Terminal Industry • FDI and other investment laws• Taxation Policy • Dispute Settlement Mechanism• Import Duties on Equipment • Competition laws• Availability of Technical Manpower

Fair revenue sharing mechanism

Table 1. Influencing factors for the Sub-systems of the M-commerce Eco-system

Figure 2. Overall Causal Loop for Policy Design in M-Commerce

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have to adapt to equip themselves in tackling absence would retard the growth of M-commerce multifaceted issues involving different independent users. Innovations in services and applications regulators. A formal coordination mechanism has offered along with ease of use and affordability to be in place to coordinate different regulators of would be one of the major deciding factors for the M-commerce eco-system or basic changes in consumption of these services. The availability and the framework like transiting to multi-sector or price of mobile terminals is also an influencing super regulatory structures have to be brought factor for M-commerce growth. Only 20% of the about. handsets in use are capable of delivering high-end

M-commerce services, rest being facilitated with Of the various policy sectors influencing mobile

only voice and SMS based services. Policy initiatives commerce, banking policy environment would be

to bring the ownership and services costs down the most important. Banking policies will play the

would increase the number of M-commerce role of an enabler in the development of mobile

subscribers. commerce as their presence would foster and

ABOUT THE SPEAKER

Deepali Sharma is Deputy Director Engineering in Prasar Bharti and is working at the North Zone headquarters. Her career in broadcasting is eleven years old and began with AIR Bhopal prior to which she was working for Department of Atomic Energy. She has experience in FM and MW transmitters, satellite earth stations, computer networking. She has keen interest in new technologies especially the technological facilitations and applications on mobile delivery platforms. She is an Electronics and Telecommunication Engineer from Indore and a Post Graduate in Public Policy and Management from Indian Institute of Management, Bangalore.

Email: mdeepali@yahoo.com